Rambus Inc (RMBS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.22% | 77.57% | 76.35% | 78.56% | 75.34% |
| Operating profit margin | 32.88% | 33.32% | 16.92% | 7.40% | -17.88% |
| Pretax margin | 35.94% | 40.59% | -1.72% | 7.09% | -14.83% |
| Net profit margin | 32.31% | 72.41% | -3.15% | 5.58% | -16.43% |
Rambus Inc's profitability ratios have shown improvement over the years based on the provided data. The gross profit margin has been consistently strong, increasing from 75.34% in 2020 to 80.22% in 2024, indicating the company's ability to effectively manage production costs.
The operating profit margin has also demonstrated significant growth, starting at -17.88% in 2020 and reaching 32.88% in 2024. This highlights Rambus Inc's efficiency in controlling operating expenses and generating profits from its core business activities.
The pretax margin has shown a remarkable turnaround, improving from -14.83% in 2020 to 35.94% in 2024. This indicates the company's ability to increase earnings before taxes, reflecting its overall operational efficiency and revenue generation.
Furthermore, the net profit margin has seen a substantial rebound, shifting from a negative margin of -16.43% in 2020 to a positive margin of 32.31% in 2024. This signifies Rambus Inc's success in managing costs, taxes, and other expenses to generate a higher level of profitability for its shareholders.
Overall, Rambus Inc's profitability ratios exhibit a positive trend, showcasing the company's ability to enhance its financial performance and deliver value to its stakeholders over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.63% | 12.21% | 7.60% | 1.97% | -3.52% |
| Return on assets (ROA) | 13.39% | 26.54% | -1.41% | 1.49% | -3.23% |
| Return on total capital | 16.33% | 18.17% | -0.76% | 3.94% | -2.45% |
| Return on equity (ROE) | 16.05% | 32.16% | -1.84% | 2.13% | -4.43% |
Rambus Inc's profitability ratios show a mixed performance over the years. Operating return on assets (Operating ROA) has improved consistently from -3.52% in December 2020 to 13.63% in December 2024, indicating increasing efficiency in generating operating profit from its assets.
Return on assets (ROA) shows fluctuating results, with a notable improvement from -3.23% in December 2020 to 26.54% in December 2023, before declining to 13.39% in December 2024. This metric signifies the company's ability to generate profits from its total assets.
Return on total capital presents a similar trend, with variations in performance. The ratio improved from -2.45% in December 2020 to 18.17% in December 2023, before slightly decreasing to 16.33% in December 2024. This metric reflects the company's efficiency in generating returns from both equity and debt capital.
Return on equity (ROE) has shown a substantial growth trajectory, increasing from -4.43% in December 2020 to 32.16% in December 2023, and then moderating to 16.05% in December 2024. ROE measures the return generated on shareholders' equity, and Rambus Inc's upward trend indicates an improvement in profitability levels for its equity investors.
Overall, Rambus Inc's profitability ratios demonstrate varying trends, with improvements in operational efficiency and returns on assets and equity over the years, albeit with some fluctuations in performance.